Wedoany.com Report-Nov. 25, Alphabet's Google (GOOGL.O) and venture capital firm Accel announced on Thursday a partnership to co-fund at least ten early-stage Indian artificial intelligence startups. This marks Google's first collaborative investment initiative of this kind.

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, U.S. January 10, 2024.

The two organizations will jointly provide up to $2 million per startup through Google's AI Futures Fund and Accel, with focus areas spanning entertainment, creativity, productivity, and software development, Accel partner Prayank Swaroop told.

The partnership reflects growing interest from leading technology companies in India, a market with nearly one billion internet users and substantial long-term growth potential.

The announcement follows Google's October commitment to invest $15 billion over five years to establish an AI data center in Andhra Pradesh, representing the company's largest single investment in India to date.

Launched six months ago, Google's AI Futures Fund has already supported more than 30 companies worldwide, including Indian webtoon platform Toonsutra and U.S.-based legal technology company Harvey. Google has also collaborated with Reliance Jio, India's largest telecommunications operator, to offer Gemini AI services to 505 million users at no additional cost.

Jonathan Silber, co-founder and director of Google's AI Futures Fund, stated: "We firmly believe that the founders in India, they are going to be playing a leading role in defining that next era of global technology."

He added: "…we think that it’s critical to invest in the early stage. Particularly in key markets like India, so that we can be at the forefront of investing in the next generation of AI leaders."

According to estimates from Nasscom and Boston Consulting Group, India's artificial intelligence market is expected to reach $17 billion by 2027.

Global spending on AI is projected to approach $1.5 trillion in 2025 and surpass $2 trillion in 2026, based on research from Gartner.

The initiative underscores the increasing importance of India as a center for AI innovation and development, supported by a growing ecosystem of entrepreneurs and expanding digital infrastructure across the country.